Policy and procedural issues in procurement and logistics for large scale projects in the oil and gas industry

a process view

Planning the procurement and logistics of materials plays such a significant role in a project's outcome that it can determine a project's success or failure even before construction begins. This article examines the impact that materials management has on the outcome of oil and gas industry construction projects. In doing so, it describes information gathered from interviews with 14 Western Canadian organizations in the oil and gas industry and reviews the existing policies and procedures that the interviewed organizations use to manage their procurement and logistics activities in relation to large industrial projects. It then details six policy-making issues and two policy-related matters that shape the oil and gas industry's materials management processes. It identifies six new developments affecting materials management and describes twelve concerns about practicing materials management as well as outlines thirteen suggestions for improving its policies and procedures.
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